section 75 over 30k ?

fire_bb

Hi all

I am considering buying a car that is over 30k. Does that mean it is not covered by section 75 automatically or it covers but any payout ( charge back ) is only upto 30k ?

Thanks

CKhalvashi

It's not covered at all.

If you pay £29999.99 for the car, you're covered, £30000.01 you're not.

dzug1

You'll find it hard to find a dealer who will sell you a car on a credit card - at least without paying a hefty fee, either overt or buried in the price

agrinnall

dzug1 wrote: »

You'll find it hard to find a dealer who will sell you a car on a credit card - at least without paying a hefty fee, either overt or buried in the price

Really not true, it may be the case if you want to pay the entire price, but as S75 cover applies if any part of the cost is put on a credit card it would only be sensible to insist on paying a small amount that way, even if there is a charge for it (which of course can only relate to the actual cost of processing, so unlikely to be more than about 5%, or £5 if you put £100 on the card). Obviously no use to the OP if they want to buy a car costing over £30K, but a sensible precaution for anyone paying less.

InsideInsurance

It'll be totally excluded

S75 is an oddity really but it comes from the CCA and the CCA only covers debts up to £30,000 and so any credit about this is unregulated by it. Even though you may only be paying part of the purchase by credit the whole value is considered when it comes to if the CCA applies or not.

So buy something within the CCA limits and only pay £1 for it on a CC and you benefit from the quirk. Buy something over the limit but pay under £30k on credit you still dont get protection.

eskbanker

Section 75a covers purchases over £30K provided they're set up via a suitable financing arrangement - a car purchase is quoted as the example at http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases#over30k

InsideInsurance

eskbanker wrote: »

Section 75a covers purchases over £30K provided they're set up via a suitable financing arrangement - a car purchase is quoted as the example at http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases#over30k

But given the OP says they want the credit to be a credit card it wouldnt qualify for 75a plus even that has a limit of £60,260 (OP hasnt said what car he is buying so could be more than that)

CKhalvashi

InsideInsurance wrote: »

But given the OP says they want the credit to be a credit card it wouldnt qualify for 75a plus even that has a limit of £60,260 (OP hasnt said what car he is buying so could be more than that)

The top end version of my car comes under that, at least in diesel form.

Anyone paying more than £60k for a depreciating asset is stupid, if you ask me.

eskbanker

InsideInsurance wrote: »

given the OP says they want the credit to be a credit card

OP doesn't actually say that (albeit the thread is on the CC board and s75 is almost always associated with CCs) but is looking for info on purchase protection so a way of achieving this via dealer finance may be of interest and relevance, given that CC payment won't qualify under s75!

dresdendave

CKhalvashi wrote: »

It's not covered at all.

If you pay £29999.99 for the car, you're covered, £30000.01 you're not.

And if you pay £30000.00?

InsideInsurance

CKhalvashi wrote: »

Anyone paying more than £60k for a depreciating asset is stupid, if you ask me.

Not sure the purpose of the thread was to discuss the sense of buying expensive cars. As to more broadly assets, are there many appreciating assets that you can buy new from shops? At least in the short-medium term the majority of things will depreciate from the retail price.